JSW Energy and Jaiprakash Power Ventures rose by 5.92% to 9.37% at 14:51 IST on BSE after the JSW Energy signed a pact with Jaiprakash Power Ventures to acquire 100% stake in the 500 megawatt Bina Thermal Power Plant.
JSW Energy (up 9.37% to Rs 74.10) and Jaiprakash Power Ventures (up 5.92% at Rs 5.90), edged higher.
The S&P BSE Sensex was up 480.80 points, or 1.93% at 25,374.61.
JSW Energy announced during trading hours today, 8 Septermber 2015, that it has entered into a binding memorandum of understanding (MoU) with Jaiprakash Power Ventures (JPVL) to acquire 100% stake in the 500 MW Bina Thermal Power Plant located in the Sagar district of Madhya Pradesh.
According to reports, JSW Energy will acquire Bina Thermal Power Plant for about Rs 3500 crore. The power plant has an installed capacity of 500 megawatt and sufficient infrastructure to ramp it up to 1,500 megawatt (MW) with marginal investment. The plant supplies most of its output to the MP State Electricity Board under a long-term power purchase agreement. Around 30% is sold in the spot market, reports added.
Further, JSW Energy said it concluded the acquisition of Himachal Baspa Power Company (HBPCL), which has two operating Hydro Power assets -- 300 MW Baspa II hydro electric project and 1,091 MW Karcham Wangtoo hydro electric project -- for an asset value of Rs 9275 crore. An additional consideration of Rs 300 crore may become payable upon receipt of certain additional consents and approvals related to the Karcham Wangtoo HEP on or before 6 September 2020. The asset value was determined based on JPVL having agreed to pay a compensation of Rs 150 crore to HBPCL and the entire profits & losses of HBPCL from 1 September 2015 accruing to the account of JSW Energy.
The acquisition marks the entry of JSW Energy in hydro power generation business besides making it the largest private sector hydro power generator in the country.
Sajjan Jindal, Chairman & Managing Director of JSW Energy, said that the acquisition will help the company in diversifying the power generation portfolio with high quality hydro power assets, besides increasing the share of long term power purchase agreements (PPA) in its basket. The plan to acquire Bina Power project will further strengthen the business model of JSW Energy as also enhancing the company's power capacity to over 5,000 MW.
These developments take the company a step closer towards achieving its aim of having over 10,000 MW of power generation capacity by 2025, JSW said in a statement.
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